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Mnuchin Wants $580 Billion Injected Into Slowing U.S. Economy – Yahoo Canada Finance

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Storyful

Chilean Driver Records Close-Up Video of Swirling Dust Devil

A Chilean driver captured a close-up video of a swirling dust devil in Los Angeles, Chile, on November 18.This video, shot by local man Rodrigo Melivilu, shows the thin, dusty whirlwind hovering above the ground.Melivilu said on Twitter the dust devil appeared near the same area that was hit by a tornado in May 2019. Credit: Rodrigo Melivilu via Storyful

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U.K. Boosts Debt Sale Plan to $648 Billion to Help Economy – Yahoo Canada Finance

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The Canadian Press

8 migrants die as boat overturns near Spanish island

MADRID — At least eight people died after a migrant boat carrying more than 30 people hit rocks close to a small port on Lanzarote in the Canary Islands, Spanish rescue services said Wednesday.The boat was one of 17 intercepted in the islands’ waters in the past 24 hours. About 450 people were rescued in the other boats, but one died later.The Canary Islands emergency service said the Lanzarote boat crashed into pier rocks and overturned in the Orzola area on the north of the island late Tuesday.Video images showed rescue workers and residents pulling young men in T-shirts from the water in the dark and other migrants sitting on the rocks.The emergency services said eight bodies from the boat were found and 28 people rescued. They said search operations were continuing for one person believed missing.In the other incidents, the national rescue service and Civil Guard rescued some 450 people, including women and children, arriving in 16 boats near Gran Canaria island. One person died.Anselmo Pestana, the central government’s representative on the islands, said the arrivals “generated difficulties but obviously none more painful than to see bodies, people arriving on our coasts dead.”He said that many possibly didn’t know how to swim, and thanked residents for helping in the rescue.Officials said the migrants were from northwest African and sub-Saharan countries. Many had set sail from Morocco several days ago.Many of the rescued were taken to the Arguineguín dock on the southwestern coast of Gran Canaria, where nearly 600 people of different origins are being kept, some in tents. Numbers on the dock rose to more than 2,000 recently.Spain has promised to set up more tents to accommodate the people arriving.More than 19,000 people fleeing poverty, violence or other circumstances have arrived in Spain’s Canary Islands this year, a 1,000% increase from the same period in 2019. More than 500 have died in the attempt. Around half of the arrivals — and most of the deaths — have been in the past 30 days, a spike that has strained resources on the archipelago.CiaráN Giles, The Associated Press

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Economy

'It's as if a bomb has gone off in our economy' – Wealth Professional

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Low interest rates mean government revenues will grow faster than interest payments and help the debt burden. However, Poloz said the way governments spend this money during the fiscal expansion will affect the sustainability of the debt, creating a balancing act between investing in infrastructure and increasing the labour force, and printing money to create inflation.

Poloz said: “We have what looks like an inflationary policy today. But that’s only because it must counter a huge deflationary shock. It’s as if a bomb has gone off in our economy and a gigantic crater has opened up in front of us. The question is, how do we move forward?

“One way would be to walk down into the crater, cross it and walk up the other side. That’s a process that could take years and would amount to what we did during the Great Depression of the 1930s. Now, instead, central banks have filled the crater up with liquidity, meaning we can row our boats to the other side.

“At the moment, it takes an inflationary policy to counteract deflationary forces and the future depends on the balance between the two.”

Unsurprisingly, Poloz believes central banks will get this transition right but he warned there are multiple scenarios where things could go wrong. The biggest risk is politics; Governments have an incentive to inflate and, in turn, highly indebted households have an incentive to vote for it. Populism, therefore, carries a risk, especially as it’s often driven by widening imbalances in income distribution.

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National child-care system would boost women's job numbers and economy, report says – CTV News

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OTTAWA —
A new report estimates that hundreds of thousands of women could get back into the labour force if the Liberals follow through on a pledge to create a national child care system.

The paper to be released Wednesday makes the case that federal spending to create a national program would “pay for itself” in the form of extra income tax, extra spending and reduced social costs as more parents entered the workforce.

There is also the potential for tens of thousands of construction jobs as new centres and spaces are built, along with an employment boost in the child-care sector as it expands.

Report author and economist Jim Stanford says the lack of accessible and affordable daycare is a key reason why fewer women in their 30s and 40s are in the workforce than men the same age.

He estimates that between 363,000 and 726,000 women in the “prime parenting age cohort” between 25 and 50 could join the labour force over a 10-year period as a national child-care program is developed.

Among them would be up to 250,000 women moving into full-time jobs.

Stanford’s paper builds on previous research into the economic spinoffs of Quebec’s publicly funded daycare system, but develops estimates based on how a national system might look.

The Liberals have promised to make a long-term spending commitment to create a national child-care system, seeing it as a key avenue to help women harder hit during the pandemic in what has been dubbed a “she-cession.”

“Economists have agreed for years that child care has huge economic benefits, but we just can’t seem to get the ball over the line in Canada,” says Stanford, director of the Centre for Future Work.

“I finally think the ducks are being lined up here and we can actually make this happen,” he adds.

“This really is the moment when we can finally move forward, and it is a moment when Canada’s economy needs every job that it can get.”

A recent report by RBC economists Dawn Desjardins and Carrie Freestone calculated that 20,600 women fell out of the labour force between February and October even as 68,000 more men joined it.

The situation was most acute for women ages 20 to 24, and 35 to 39; one of the reasons the duo cited for the sharper drop was the pandemic-caused closure of child-care centres.

Child-care centres, which often run on tight margins and rely on steep parental fees, couldn’t keep up with costs during spring shutdowns and shed about 35,000 jobs between February and July. Some centres have closed for good.

The worry Stanford notes is that many of the job losses will become permanent and more centres will close without financial assistance from governments.

Scotiabank economists Jean-Francois Perrault and Rebekah Young suggested in September that creating nationally what Quebec has provincially would cost $11.5 billion a year.

Their analysis also suggested federal coffers could reap billions in new tax revenue as women in particular would get into the workforce in greater numbers, offsetting some of the overall cost.

Stanford’s estimate is for a boost to government revenues of between $18 billion and $30 billion per year, split between federal and provincial governments.

“This literally is a social program that pays for itself,” Stanford says.

“The economic benefits of giving this first-class care to early-age children, and getting their mothers in the labour market working to their full potential, are enormous.”

He argues that provinces, mired in a fiscal quagmire worse than the federal government’s, shouldn’t stand in the way of “reasonable demands” from the federal government to create a national system.

Provinces have responsibility for child-care delivery. Stanford says they cannot afford to look this gift horse of new revenues in the mouth given the federal government would foot most of the bill.

This report by The Canadian Press was first published Nov. 25, 2020.

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